MHADA redevelopment rules: what a society in a MHADA layout has to get right before a builder is chosen

Why MHADA redevelopment is its own subject

An ordinary society redevelops on land it owns, under the general regulations. A MHADA society sits on land the Board allotted, under an allotment that still carries the Board's interest, in a layout the Board planned. So a MHADA redevelopment has an extra party at the table from the first day, and its own regulation in the development code.

That regulation is 33(5) of the Development Control and Promotion Regulations, 2034, which applies to the redevelopment of housing schemes of the Maharashtra Housing and Area Development Authority. It is the source of the additional floor space index a MHADA layout can use, and of the terms on which it can use it.

The floor space index, the premium payable, the share of built up area to be handed to MHADA, and the minimum area entitlement per member under Regulation 33(5) are figures that have been amended by government resolution more than once. They are not quoted here because any number printed today would need checking against the current text on the day it is used. Read the regulation and the latest resolution before believing any figure on a builder's presentation.

Does a MHADA society need conveyance before redevelopment?

The society needs its position on conveyance to be clear, and in a MHADA layout that is usually a lease from the Board rather than an outright transfer of the land. A society that does not hold the lease, or whose lease has not been executed or has lapsed, is not in a position to sign a development agreement on its own terms. The first document to look at is not the builder's offer; it is the lease, or the absence of one.

The general position on conveyance and why it matters is set out in conveyance and deemed conveyance. For a MHADA society, add the Board's no objection to the list, because a redevelopment under 33(5) runs through the Board.

What the Board's no objection covers

The Board is party to a 33(5) redevelopment because it is the authority whose scheme is being rebuilt. Its no objection is the point at which it confirms the society's entitlement, the dues position, and the terms on which additional floor space is released. Nothing proceeds to the municipal corporation for approval without it.

Which is why the paperwork of the individual members matters to the society as a whole. A member whose tenement was transferred without the Board's permission, or whose transfer on death was never completed, is a defect in the society's file when the Board examines it. The rules on transfer and transfer on death are not just individual concerns; they are what a clean society file is made of.

Can a MHADA society redevelop itself?

Yes. MHADA published Guidelines for Self Redevelopment on 26 June 2023, setting out how a society can take on the redevelopment of its own layout rather than appointing a developer. The attraction is obvious: the society keeps what a developer would otherwise take as profit. The cost is that the society then carries the financing, the contractor, the approvals and the risk itself.

The eligibility conditions, the financing arrangements and the incentives in the 2023 self redevelopment guidelines should be read from the document itself before a society commits to that route. The guidelines are a scanned document of some length and are not summarised here.

Self redevelopment suits a society with a functioning committee, members who agree, and access to the professionals it will need. It does not suit a society that is choosing it only because a builder's offer looked thin.

The consent question

Redevelopment of a cooperative housing society in Maharashtra requires the members' consent obtained in the manner the cooperative law and the government's directions prescribe: a general body meeting called for the purpose, with the required majority, minuted and recorded.

The percentage of members' consent required, and the procedure for the general body meeting under the applicable government direction for redevelopment of cooperative housing societies, should be confirmed against the current direction before the meeting is called, because a meeting called on the wrong footing has to be held again.

Whatever the number, the practical advice is the same: consent obtained after the builder has been chosen is consent the members were not really asked for. The society decides to redevelop first, on its own terms, then goes to the market.

What we would check before a society signs anything

1. 1The lease. Does the society hold one from the Board, is it executed, and is it current?
2. 2The Board's dues. Arrears on the society's account will surface at the no objection stage.
3. 3Every member's transfer file. Any tenement that changed hands without permission, or any death without a completed transfer, needs regularising before the Board looks at the society as a whole.
4. 4The current text of 33(5) and the latest resolution under it, read by somebody who reads regulations, not a builder's brochure.
5. 5The consent process, set up correctly before the vote.
6. 6The developer's record of finishing MHADA redevelopments, not his record of starting them.

Before the first builder meeting

Get the lease, the Board's account and every member's file in order, and read the regulation as it stands today, and the society goes to the market from a position of strength. If the society is in Borivali, Kandivali or Malad, our MHADA paperwork service handles the members' transfers and regularisation a clean society file needs.